Global Healthcare Analyst

Tina Banerjee

Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/3sbio-inc" target="_blank" data-smartkarma-citation="entities:459:1" rel="noopener">3SBio Inc (1530 HK)</a> announced the placement of 105.2M shares for subscription at HK$29.62 per share.</li>
<li>The company intends to use 80% of the net proceeds for R&amp;D-related expenditures on innovative drug candidates and the rest 20% for working capital and other general corporate purpose.</li>
<li>The placement provides an indirect way of subscribing to Mandi shares. We reiterate our bullish stance on 3SBio with a 25-30% upside scope in the near term.</li>
</ul>



3SBio Inc (1530 HK) announced the placement of 105.2M shares for subscription at HK$29.62 per share.
The company intends to use 80% of the net proceeds for R&amp;D-related expenditures on innovative drug candidates and the rest 20% for working capital and other general corporate purpose.
The placement provides an indirect way of subscribing to Mandi shares. We reiterate our bullish stance on 3SBio with a 25-30% upside scope in the near term.


3SBio (1530 HK) Placement: 3SBio’s Pipeline Strength, An Indirect Stake in Mandi Makes It Attractive

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/3sbio-inc" target="_blank" data-smartkarma-citation="entities:459:1" rel="noopener">3SBio Inc (1530 HK)</a> signed an outlicensing deal worth more than $6B with Pfizer for its PD-1/VEGF bispecific antibody, SSGJ-707. Since signing the deal, 3SBio shares rallied more than 55%.</li>
<li>Considering deals signed with Chinese companies for bispecific antibody drug candidates in recent times, 3SBio seems to have secured best valuation for its asset.</li>
<li>Initiation of global trial of SSGJ-707 and data readout from its ongoing China trials for additional indications, continued strong financial performance, and new approvals are upcoming catalysts.</li>
</ul>



3SBio Inc (1530 HK) signed an outlicensing deal worth more than $6B with Pfizer for its PD-1/VEGF bispecific antibody, SSGJ-707. Since signing the deal, 3SBio shares rallied more than 55%.
Considering deals signed with Chinese companies for bispecific antibody drug candidates in recent times, 3SBio seems to have secured best valuation for its asset.
Initiation of global trial of SSGJ-707 and data readout from its ongoing China trials for additional indications, continued strong financial performance, and new approvals are upcoming catalysts.


3SBio Inc (1530 HK): Licensing Deal a Market Hit; Will It Continue?

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

China Traditional Chinese Medicine / Event-Driven

<ul>
<li>Shockingly, the Sinopharm-led consortium’s offer for <a href="https://www.smartkarma.com/entities/china-traditional-chinese-medicine" target="_blank" data-smartkarma-citation="entities:351:1" rel="noopener">China Traditional Chinese Medicine (570 HK)</a> has lapsed as the precondition long stop date has not been extended.</li>
<li>This deal break caught many, including me, off guard. There are lessons to be learnt and questions to be asked. </li>
<li>Shareholders will have a bruising Monday. Our analysis suggests a deal break price of around HK$3.44, a 10% downside to the last close.</li>
</ul>


Shockingly, the Sinopharm-led consortium’s offer for China Traditional Chinese Medicine (570 HK) has lapsed as the precondition long stop date has not been extended.
This deal break caught many, including me, off guard. There are lessons to be learnt and questions to be asked. 
Shareholders will have a bruising Monday. Our analysis suggests a deal break price of around HK$3.44, a 10% downside to the last close.


China Traditional Chinese Medicine (570 HK): Disaster as Offer Lapses, Potential Deal Break Price

<ul>
<li>
<a href="https://www.smartkarma.com/entities/3sbio-inc" target="_blank" data-smartkarma-citation="entities:459:1" rel="noopener">3SBio Inc (1530 HK)</a> proposed to spin-off and separately list the shares of Mandi, a subsidiary of the company.</li>
<li>In 2024 and 1H25, Mandi contributed 16% and 17% of total consolidated sales respectively, while its EBITDA contribution was 14.4% (in 2024) and 11.5% (in 1H25).</li>
<li>As far as 3SBio (ex-Mandi) is concerned, marketing approvals for key pipeline product like SSGJ-608, along with indication expansion, geographical expansion of few drugs will be key in near term.</li>
</ul>



3SBio Inc (1530 HK) proposed to spin-off and separately list the shares of Mandi, a subsidiary of the company.
In 2024 and 1H25, Mandi contributed 16% and 17% of total consolidated sales respectively, while its EBITDA contribution was 14.4% (in 2024) and 11.5% (in 1H25).
As far as 3SBio (ex-Mandi) is concerned, marketing approvals for key pipeline product like SSGJ-608, along with indication expansion, geographical expansion of few drugs will be key in near term.


3SBio Inc (1530 HK): Proposed Mandi Spin Off and Listing Sensible; 3SBio Ex Mandi Formidable Enough

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Jingze Biopharmaceutical (Hefei) / Equity Capital Markets

<ul>
<li>JZB33 is expected to have more growth potential than JZB30. However, the rhFSH market is highly competitive. JZB30/JZB33 not only need to compete with MNCs but also domestic Big Pharma.</li>
<li>The "inverted pyramid" pipeline distribution leads to a high dependence JZB30, JZB33, JZB05 for Jingze's performance growth in the next 3-5 years, thus lacking sustained innovation and growth momentum.</li>
<li>Post-Money valuation was RMB3.09 billion after Series C+ Financing. We think valuation of Jingze should be lower than Henlius, <a href="https://www.smartkarma.com/entities/chengdu-kanghong-pharmaceutical-group-a" target="_blank" data-smartkarma-citation="entities:24723:1" rel="noopener">Chengdu Kanghong </a>due to the concerns on commercialization outlook/Biosimilar VBP.</li>
</ul>


JZB33 is expected to have more growth potential than JZB30. However, the rhFSH market is highly competitive. JZB30/JZB33 not only need to compete with MNCs but also domestic Big Pharma.
The "inverted pyramid" pipeline distribution leads to a high dependence JZB30, JZB33, JZB05 for Jingze's performance growth in the next 3-5 years, thus lacking sustained innovation and growth momentum.
Post-Money valuation was RMB3.09 billion after Series C+ Financing. We think valuation of Jingze should be lower than Henlius, Chengdu Kanghong due to the concerns on commercialization outlook/Biosimilar VBP.


Pre-IPO Jingze Biopharmaceutical (Hefei) - The Concerns and the Outlook

China

Luye Pharma Group Ltd focuses on the research and development, production, and sales of pharmaceutical drugs for orthopedics, neurology, gastroenterology, and hepatology. The Company also sells active ingredients, R&D results, and patents of new drugs, as well as providing research services on a contractual basis.

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Luye Pharma (2186 HK)

3SBio (1530 HK) Placement: 3SBio’s Pipeline Strength, An Indirect Stake in Mandi Makes It Attractive

3SBio Inc announces placement of 105.2M shares at HK$29.62/share for R&D and working capital. Placement attractive given 3SBio's pipeline...

Tina Banerjee

3SBio Inc (1530 HK): Licensing Deal a Market Hit; Will It Continue?

3SBio signed $6B outlicensing deal with Pfizer for SSGJ-707, resulting in spectacular rally in 3SBio shares. Global trial initiation of SSGJ-707...

Tina Banerjee

China Traditional Chinese Medicine (570 HK): Disaster as Offer Lapses, Potential Deal Break Price

This deal break caught many, including me, off guard. There are lessons to be learnt and questions to be asked. Shareholders will have a bruising...

Arun George

3SBio Inc (1530 HK): Proposed Mandi Spin Off and Listing Sensible; 3SBio Ex Mandi Formidable Enough

3SBio plan to spin-off and separately list shares of subsidiary Mandi, which contributed 17% of sales and 11.5% of EBITDA. Approvals and expansion...

Tina Banerjee

Pre-IPO Jingze Biopharmaceutical (Hefei) - The Concerns and the Outlook

"Inverted pyramid" pipeline distribution lead to high dependence JZB30/JZB33/JZB05 for Jingze's performance growth, thus lacking sustained...

Xinyao (Criss) Wang

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52-week Range

Market Cap (USDm)

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3SBio (1530 HK) Placement: 3SBio’s Pipeline Strength, An Indirect Stake in Mandi Makes It Attractive

​3SBio Inc announces placement of 105.2M shares at HK$29.62/share for R&D and working capital. Placement attractive given 3SBio's pipeline...

Tina Banerjee

3SBio Inc (1530 HK): Licensing Deal a Market Hit; Will It Continue?

​3SBio signed $6B outlicensing deal with Pfizer for SSGJ-707, resulting in spectacular rally in 3SBio shares. Global trial initiation of SSGJ-707...

Tina Banerjee

China Traditional Chinese Medicine (570 HK): Disaster as Offer Lapses, Potential Deal Break Price

This deal break caught many, including me, off guard. There are lessons to be learnt and questions to be asked. Shareholders will have a bruising...

Arun George

3SBio Inc (1530 HK): Proposed Mandi Spin Off and Listing Sensible; 3SBio Ex Mandi Formidable Enough

​3SBio plan to spin-off and separately list shares of subsidiary Mandi, which contributed 17% of sales and 11.5% of EBITDA. Approvals and expansion...

Tina Banerjee

Pre-IPO Jingze Biopharmaceutical (Hefei) - The Concerns and the Outlook

"Inverted pyramid" pipeline distribution lead to high dependence JZB30/JZB33/JZB05 for Jingze's performance growth, thus lacking sustained...

Xinyao (Criss) Wang

3SBio Inc announces placement of 105.2M shares at HK$29.62/share for R&D and working capital. Placement attractive given 3SBio's pipeline...

3SBio signed $6B outlicensing deal with Pfizer for SSGJ-707, resulting in spectacular rally in 3SBio shares. Global trial initiation of SSGJ-707...

3SBio plan to spin-off and separately list shares of subsidiary Mandi, which contributed 17% of sales and 11.5% of EBITDA. Approvals and expansion...